Uruguay hikes electricity prices by 6.9 percent

MONTEVIDEO Jan 14 (Reuters) - Uruguay is increasing
electricity prices by 6.9 percent, Industry Minister Roberto
Kreimerman said on Wednesday, as part the government's efforts
to cut its budget deficit.

National utility company UTE had proposed a rise of just 3.9
percent.

"Tariffs will rise by 6.9 percent and will include, on top
of this hike, which is still below inflation, incentives to
improve energy efficiency," Kreimerman told a news conference.

The small South American country has registered solid
economic growth for a decade under its left-wing government, but
the government is struggling to cut a budget deficit of 3.6
percent of gross domestic product, while also trying to tame
inflation, which was 8.26 percent last year.

The rise in the cost of electricity will be offset somewhat
by last week's 3.8 percent reduction in fuel prices due to the
plunge in crude oil prices.
(Reporting by Malena Castaldi; Writing by Sarah Marsh; Editing
by Peter Galloway)